Global e-commerce revenue is expected to grow by 65% from 2023 to 2027, reaching an astonishing $6.34 trillion, according to a recent study by flyers-on-line.com. Driven primarily by growth in the fashion, electronics and furniture segments, promising gains can also be seen in smaller segments such as toys, hobby and DIY and media.
With more shoppers continuously turning to online shopping, the global e-commerce landscape is poised for significant growth. More specifically, China and the U.S. are emerging as dominant growth leaders, overshadowing Europe:
- China: With a jaw-dropping growth of over 17%, China’s e-commerce revenue is set to skyrocket from $779.858 billion to an astonishing $1,728.654 billion.
- The U.S.: Not to be outdone, the U.S. is tracking a commendable growth of 11.5%, pushing its revenue from $1,010.999 billion upwards.
- Europe: Although trailing behind, Europe is also showing promise with a 10% growth rate, taking its revenue from $730.329 billion to $1,068.385 billion.
Industry Segmentation of Global Ecommerce Revenue
The study analyzed multiple sectors, including fashion, electronics and, surprisingly, food. Each sector was evaluated based on global revenues in USD, with particular attention given to high-performing sub-sectors like consumer electronics.
- Electronics: Electronics has taken e-commerce by storm. From a substantial $437 billion in 2017 to a staggering expected $1,448 billion by 2027, it’s clear that electronics have become an integral part of our digital shopping carts.
- Fashion: With ever-changing trends and seasons, online apparel shopping has thrived. From $348 billion in 2017, the online fashion market is set to expand to a whopping $1,496 billion by 2027.
- Furniture: The digital furniture market has expanded from $277 billion in 2017 to a projected $1,134 billion by 2027. The numbers reflect a consistent consumer shift towards online furniture shopping.
- Food: The digital food and beverages sector boasts a 25.8% average annual growth rate. From $66 billion in 2017, it’s projected to reach a delectable $654 billion by 2027.
- Miscellaneous: Beyond the main sectors, there’s a myriad of growth in toys, hobbies, DIY and more. These segments, from hobby and stationery to sports and outdoor, all showcase strong growth, unified by a 15.1% annual growth rate. The media segment alone is eyeing $654 billion by 2027, up from $346 billion in 2023.
Online Shoppers Conduct Pre-Purchase Research
In both the U.S. and China, consumers heavily research before major purchases. Forty-five percent of them trust online reviews and prefer unified online marketplaces. Differences emerge in shipping preferences and mobile shopping habits, with Chinese consumers showing a stronger inclination for express shipping and mobile transactions. Both nations also share a nostalgic yearning for traditional shopping experiences.
High Internet Usage Boosting Ecommerce Growth
Across the globe, internet access has transitioned from a luxury to a necessity, acting as a primary catalyst for e-commerce growth. The study found that an impressive 75.7% of the global populace now enjoy online connectivity.
Leading this charge is the U.S., boasting a whopping 94% internet penetration. Not to be outdone, Europe displays an admirable average of 86.2% connectivity. This European connectivity landscape is interestingly textured: Spain surges with 90%, while the U.K. trails just behind at 89%. Germany and France, two of Europe’s economic powerhouses, have 85% and 84% respectively.
But perhaps the most intriguing figure is China’s. Despite its renowned stringent internet regulations, the Asian giant reports a 79% penetration rate, echoing similar statistics in Italy.